NTPC has enhanced imported coal order by 1.42 MMT under running contracts: Singh

• 'NTPC has enhanced package quantity of running contracts by 1.42 Million Metric Tonnes (MMT) for blending of domestic coal with imported coal'
• 'NTPC had not placed any fresh order for procurement of imported coal during FY21'

New Delhi: State-run NTPC Ltd has enhanced the order quantity for imported coal by 1.42 Million Metric Tonnes (MMT) under running contracts in FY22 to ensure adequate coal stock at thermal power plants, said Power Minister RK Singh recently. On being asked if NTPC was compelled to import coal to overcome the coal shortage in power plants, the minister said in the Lok Sabha, "To ensure adequate coal stock during the current FY i.e., 2021-22, NTPC has enhanced package quantity of running contracts by 1.42 Million Metric Tonnes (MMT) for blending of domestic coal with imported coal."

NTPC had not placed fresh coal import order in FY21

Singh also told the Lower House of Parliament in a written response that the company had not placed any fresh order for procurement of imported coal during FY21 and had also reduced package quantities of its various contracts for procuring imported coal. 

Backdrop

India recently faced an acute crisis in the power sector between August and October due to low coal stock at thermal power plants amid a sudden surge in electricity demand. The situation, coupled with high international coal prices, depleted coals stock to record lows at thermal power plants. In order to tide over the crisis and build coal stock at thermal power plants, Coal India Ltd (CIL) had stepped up coal supplies to the power sector. In August, NTPC had imported close to 2.7 lakh tonne of coal, which it said was "leftover quantity from earlier contracts."

In the aftermath of the crisis, the coal stock situation at thermal power plants has improved considerably. According to the latest Central Electricity Authority (CEA) data, the average coal stock at 135 coal-fired power plants monitored by it is sufficient for 10 days. 

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)